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Children’s Place Reports Lower Third Quarter Profits Compared to Last Year

Retailer The Children’s Place announced third quarter net sales of $453.4 million for the third quarter, a 2.1 percent decline compared to its $463.2 million in sales in the same period last year. “Third quarter sales and profits for The Children’s Place were impacted by poorly performing fashion in the back-to-school line as well as […]

Retailer The Children’s Place announced third quarter net sales of $453.4 million for the third quarter, a 2.1 percent decline compared to its $463.2 million in sales in the same period last year. “Third quarter sales and profits for The Children’s Place were impacted by poorly performing fashion in the back-to-school line as well as unseasonably warm temperatures,” commented Jane Elfers, president and chief executive officer of The Children’s Place. “While short-term market conditions remain challenging for our business, we are making significant progress on our longer-term growth initiatives which we believe will lead to enhanced sales and profitability in 2011 and beyond.”

Recently, major shareholder Galt Investment Partners suggested in a letter that Children’s Place seek a merger with one or both of its primary competitors, Gymboree and Carter’s, as well as enter talks with established private equity firms.

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